Import duty policy for Goods and Services from industrial and commercial park into Domestic Areas in Vietnam

Import duty policy for Goods and Services from industrial and commercial park into Domestic Areas in Vietnam (Illustration)

Circular 162/2007/TT-BTC stipulates the following import tax policy for goods and services from industrial and commercial park entering the domestic market of Vietnam:

- Goods originating from foreign countries must pay import tax according to current regulations;

- Goods produced, processed, recycled, or assembled in industrial and commercial park, if the ASEAN-origin value content accounts for 40% or more, confirmed by a Certificate of Origin - Form D, and meeting current regulations, are eligible for the preferential CEPT import tax rate when entering the domestic market of Vietnam;

- Goods from industrial and commercial park imported into the domestic market of Vietnam, if produced in Laos, are subject to reduced import tax based on treaties signed between the Government of Vietnam and Laos, and guiding documents;

- Goods listed under the List of Goods Originating from industrial and commercial park issued by the An Giang Provincial People's Committee at each period (referred to as the List of Goods Originating from industrial and commercial park An Giang) are exempt from import tax when imported into the domestic market of Vietnam. This includes: Agricultural products produced by residents in industrial and commercial park; Goods produced, processed, recycled, or assembled in industrial and commercial park without using imported materials or components from foreign countries.

Goods produced, processed, recycled, or assembled in industrial and commercial park using imported materials or components directly from foreign countries (excluding goods imported from the domestic market of Vietnam using imported materials or components from foreign countries) when imported into the domestic market of Vietnam are only required to pay import tax on the portion of imported materials or components from foreign countries constituting such goods.

Note: The basis for determining the payable import tax for the portion of imported materials or components from foreign countries constituting goods imported into the domestic market of Vietnam includes: Tax value determined according to current regulations; The quantity of goods imported into the domestic market of Vietnam; The import tax rate for each type of material or component. The tax value and rate are applied at the time of opening the customs declaration for import into the domestic market.

Additionally, goods and services from foreign countries and from the domestic market of Vietnam imported into industrial and commercial park and only used within industrial and commercial park are exempt from import tax.

Details can be found in Circular 162/2007/TT-BTC which comes into effect in Vietnam from January 29, 2008.

Ty Na

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